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Crocs Q3 revenues increase 15.7 percent, earnings jump

By Prachi Singh

27 Oct 2020

Crocs, Inc. reported third quarter revenues at 361.7 million dollars, an increase of 15.7 percent or 15.9 percent on a constant currency basis, with growth in all three channels. The company said in a statement that operating income increased 80.7 percent to 72.1 million dollars and operating margins expanded 710 basis points to 19.9 percent, while diluted earnings per share grew 78.4 percent to 91 cents and adjusted diluted earnings per share were 94 cents or 64.9 percent above the 57 cents for the same period last year.

Commenting on the third quarter trading, Andrew Rees, the company’s Chief Executive Officer, said: “We achieved record third quarter revenue and EPS despite the challenges presented by the global Covid-19 pandemic.”

Crocs whole sales up 12.4 percent, retail comparable sales rise 16.2 percent

Crocs added that ecommerce revenues grew 36.3 percent, wholesale revenues grew 12.4 percent and retail revenues increased 8.9 percent. The company’s digital sales grew 35.5 percent to represent 37.7 percent of revenue versus 32.2 percent last year with growth in all regions and retail comparable store sales grew 16.2 percent.

Gross margin of 57.2 percent increased 480 basis points compared to 52.4 percent in the same period last year, while adjusted gross margin of 57.4 percent rose 380 basis points from the same period last year.

Crocs revenues in the Americas of 234 million dollars increased 27.3 percent on a constant currency basis, Asia Pacific revenues of 67.7 million dollars decreased 9 percent on a constant currency basis and EMEA revenues of 60 million dollars increased 10.7 percent on a constant currency basis.

The company added that excluding the potential impact of any future Covid-related shutdowns in major markets, the company expects fourth quarter revenue to grow between 20 percent and 30 percent compared to 2019, translating into full year 2020 revenue growth of approximately 5 percent to 7 percent.